The Housing Authority of the City of EI Paso (HACEP) was awarded tax credits totaling almost $30 million for new construction and renovation projects for three apartment complexes.
“HACEP continues to invest millions of dollars in the EI Paso community developing and re-developing in areas that will offer our families and children easier access to new opportunities, higher wage jobs, good schools, and services,” added HACEP’s CEO Gerald Cichon upon the announcement from TDHCA. “This award is not only a win for HACEP residents, but for the entire community.”
One of the awards is a 9% housing tax credit today, valued at $15 million. These funds will go towards financing the construction of a brand-new residential apartment complex in Northeast El Paso.
The other awards are 4% housing tax credits, valued at approximately $14.4 million. These funds will be used to completely renovate and remodel two existing apartment complexes that were built almost 50 years ago.
The apartments will not only have access to the nearby community college campus and city park, but will also feature hiking paths, biking trails, and a playground of its own.
The apartments will also have access to neighborhood stores, offices, and public transportation routes.
This represents another round of annual tax credit allocation in which HACEP has competed for, and won, highly competitive 9% tax credits to build new affordable housing in El Paso.
This will be HACEP’s first major 9% tax credit project for Northeast El Paso.
HACEP’s past successful 9% tax credit projects are located throughout other parts of El Paso including the far eastside (Commissioners’ Corner Apartments), eastside (Gonzalez Place Apartments), east central (Westfall, Krupp Apartments), south central (Tays South, Sherman Apartments), downtown (the Blue Flame Building), and westside (Medano Heights Apartments).
At its meeting on Thursday, TDCHA also issued approximately $14.4 million in 4% tax credit funding for the renovation of two apartments, the DeWetter Apartments and the Kathy White Apartments.
The DeWetter Apartments, consisting of 98 units, is located at 560 Lisbon Ave. The Kathy White Apartments, consisting of 78 units, is located at 2500 Mobile Avenue. These two properties were originally constructed in 1971 and 1972 respectively and the units have been occupied and operating as public housing units.
The newly renovated apartments will cease to be public housing, as they will be converted into a more efficient federal subsidy programs for the residents.
The 4% tax credits, along with other funds provided by HACEP and from other sources, will permit both of apartment complexes to be completely renovated and updated. The total redevelopment costs for both apartments will be approximately $46 million.
“The key to HACEP’s continued revitalization effort is being creative in securing the financial resources to fund these RAD projects,” stated Francisco Ortega, Chairperson of HACEP’s Board of Commissioners. “The tax credit allocations awarded today will fund the majority of the total project costs that will bring millions of dollars in new development and renovated housing to El Paso.”
These three projects are part of HACEP’s ongoing Rental Assistance Demonstration (RAD) revitalization effort in EI Paso.
The RAD project is a $1.3 billion project to re-build or renovate all of HACEP’s public housing apartments and to convert them into newer, more-efficient, and more-sustainable housing for low income families.
The tax credit awards were issued in Austin on July 25, 2019 by the Texas Department of Housing and Community Affairs (TDHCA), the state agency responsible for allocating federal tax credit funding in Texas.